The Final Purchase Index for - - -

8/26/14 moved down -$1.74 and the model projects that the component on the 8/26/14 kill willdrop by something like -1.40 to -1.70. If the 2.00 surge in the VVVs hold, the will close the discount of the VVVs to the index to about 2.50. Compared to the 18+ point gap we saw about 10-days ago, that is really no gap.

I had been anticipating a lot of volatility in the VVVs as we move toward cash settlement and so far the market is not disappointing me. This anticipated volatility has me nearly petrified and I hardly dare step out of my comfort zone of being short Z/G spreads and long K/M spreads.

Maybe if I take a couple of "Bravery" pills, I will get enough backbone to tray a VVV scalp later today.

Best wishes,